All posts tagged US growth

One key assumption central bankers are making is that the trend growth rates of their economies are broadly unchanged from what they were before the financial crisis.

There are good reasons to believe they’re wrong. And this, in turn, will have significant repercussions for both future policy and the outlook for asset markets.

Members of the Bank of England’s policy-setting committee have repeatedly argued that the U.K.’s long-run growth rate wasn’t affected by the financial crisis and the deep recession. In other words, they’re targeting trend growth of between 2.25% and 2.5%.

The story’s similar in the U.S., although there the trend is seen as being closer to 3%.